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Celestica (TSX:CLS) raised its full-year 2026 revenue outlook, pointing to stronger demand tied to AI-focused data center technologies.
The company linked the guidance update to upcoming program launches that it believes could expand its presence with key customers.
Major research firms have recently renewed coverage on Celestica, highlighting its position within the AI hardware supply chain.
Celestica sits at the intersection of electronics manufacturing and hardware design services, supplying critical components and systems for data centers and other infrastructure. With AI workloads requiring higher computing density and more complex architectures, demand for AI-ready servers, advanced boards and related subsystems has become a key theme across the data center supply chain.
For investors watching the AI hardware build out, Celestica’s updated 2026 revenue outlook and recent analyst coverage present the company as a name to monitor in this segment. The focus is likely to be on how quickly new AI related programs transition from launch to volume production, and how that mix shapes Celestica’s revenue profile over the next few years.
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Why Celestica could be great value
Celestica’s move to lift its 2026 revenue outlook to US$17.0b, alongside Q1 2026 guidance of US$3.85b to US$4.15b, signals that management sees sustained demand for AI-related data center hardware flowing through to its order book. The combination of strong 2025 results, guidance that points to further top-line growth tied to AI workloads, and renewed coverage from banks such as BofA appears to be drawing in investors who are looking for ways to gain exposure to AI infrastructure beyond chip makers like Nvidia and AMD.
The higher guidance lines up with the existing Celestica narrative that emphasizes hyperscaler demand, AI networking ramps and regional manufacturing depth as key supports for revenue visibility. Index inclusions and product launches such as higher-density storage platforms fit the story of a company positioned as a design-plus-manufacturing partner to large cloud providers, which some investors use when comparing it with peers such as Flex and Jabil.
Raised 2026 revenue outlook and Q1 guidance point to continuing demand for AI-focused data center programs.
Recent analyst coverage with positive ratings and ongoing index inclusion have increased the company’s visibility with institutional investors.
Heavy reliance on a concentrated hyperscaler customer base means any slowdown in AI or cloud spending could quickly affect orders.
Reports of increased insider selling, including by the COO, may be interpreted by some investors as a signal to scrutinize expectations more closely.
From here, investors will likely watch how quickly new AI-related programs convert from initial ramps into steady, volume production and whether quarterly results continue to align with the higher revenue targets. If you want to see how different investors are connecting these guidance updates with long-term growth and risk scenarios, have a look at the community views and analyst narratives on Celestica’s dedicated page.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CLS.TO.
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